My husband wants to put ALL our retirement savings into annuities because he’s worried that the stock market could nose dive once again. Any advice?
My husband wants to put ALL our retirement savings into annuities because he’s worried that the stock market could nose dive once again. Any advice?
0 Answers
Maci Berkeley wrote on :
Some of this depends on your particular situation. My father did this, betting on my mother outliving him and he hit a home run since she lived to almost 97. He was very determined that they not become dependent on me, as both of their widowed mothers had on them.
Lulu2011 wrote on :
An absolute mistake…at tops you might gain 5 to 6 per cent annually. Is this enough for you to live on? A well diversified portfolio, allocated in emerging markets will likely yield well over ten per cent over the next two decades. Over the period 1999 through 2010, these markets averaged a return of over 20 per cent annually. Hope this helps you.
Marne Rogers wrote on :
Thanks Lulu! I have been unable to convince my husband otherwise and it’s closer and closer to a done deal. He thinks the numbers work and in my opinion they are OK, just not stellar. We have no dependants to worry about and will have our home paid for in a few years. We haven’t had good financial guidance over the years, just doing things by the seat of the pants. We’re probably typical.
Lulu2011 wrote on :
Hi and you’re so very welcome. Yes, I believe most are quite unsophisticated in the area of investing. I’m fortunate in that my husband is a CFO, MBA, and Registered Investment Advisor. Most of us, including myself, do not have this background. He works via Dimensional Funds and we have had overall positive results. This is longterm strategy so we are not in and out of the markets, buying, waiting, hoping, a particular stock will make us rich. Historically, the way we invest has proven an overall positive experience. In all investing there are various levels of risk, of course. So many of us come from a place of fear, that it disables us from seeking out new ways of doing things. Best regards.
Marne Rogers wrote on :
Hi again, Interesting comments. My dad was an accountant, but never invested strategically. I never had a good financial grounding other than work related seminars. You are so correct about fear as a disabling force. This is one of the many things I love about FOF, the support we give each other and new ways of seeing life.
Denise A Wind wrote on :
We love REITS. High yielding investments that pay out monthly. We purchase APPLE REITS. Check them out! No mortgages on these properties make it a safer investment.
Geri Brin wrote on :
that is exactly what my financial advisor did with the majority of my money. i’ve made a decent return during the last two years.
Marne Rogers wrote on :
Glad to hear that. My risk tolerance is much higher than my hubby’s and I worry that we’d be trading security for the up side. On the other hand, “Don’t worry, be happy!”
Geri Brin wrote on :
If you intend to work a lot longer, you probably can afford to be a little riskier.
Marne Rogers wrote on :
Only another 5 years and my husband is already retired. We’ll be OK financially. I am getting used to the idea.